What is a characteristic of an adhesion contract?

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An adhesion contract is characterized by one party imposing the terms on the other, often leading to a significant imbalance in bargaining power. Such contracts are typically used in situations where one party has much greater power, such as a large corporation providing a standardized agreement to a consumer. The terms are not negotiated; instead, the weaker party has little or no choice but to accept the contract as presented.

While it is not universally true that adhesion contracts are always highly restrictive or unenforceable, the nature of these contracts does raise important concerns regarding fairness and enforceability. Courts may scrutinize adhesion contracts for potential unconscionability, particularly if the terms are deemed excessively one-sided or if the weaker party did not have a meaningful opportunity to negotiate. This means that option B accurately highlights the potential issues associated with adhesion contracts.

The remaining choices do not accurately depict the essence of adhesion contracts. For instance, adhesion contracts are typically not voluntary and fair, nor do they involve equal bargaining power, as the defining feature is that one party dominates the terms. Therefore, asserting that parties can freely negotiate terms contradicts the fundamental nature of adhesion contracts.

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